OJK responds to the edict of MUI, the online loans with Riba. forbids

TEMPO.CO, Jakarta – The Financial Services Authority (OJK) spokesman, Sekar Putih Djarot, responded to the edict or fatwa of the Indonesian Ulema Council (MUI) declaring online or offline loans that require interest or known as riba is haram or illegal under Islamic law. According to Sekar, the Indonesian financial system still adheres to a dual system, so that it is still possible to determine online or offline loans according to conventional and Sharia law.

“We interpret it as a prohibited practice by illegal lenders,” said Sekar on Friday November 12th.

President Joko Widodo or Jokowi is concerned about illegal online loans and calls on the OJK, ministries and the police to eradicate them. Sekar emphasized that ministries and agencies are working to combat illegal practices by high-interest loans and debt collection agencies.

According to her, the OJK and the police have proactively uncovered the causes of the credit problem and taken legal repression. The OJK, she added, has also spoken to the Indonesian Fintech Lenders Association (AFPI), which has agreed to ask lenders to cut the current lending rate by 50 percent.

“OJK is now preparing to restructure the credit ecosystem, starting with [the elements of] Capital, Fit and Proper, Risk Management and others, “she said.

Read: Jakarta Police Launch Hotline To Fight Illegal Lending


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